The acquisition will enhance BNY’s capabilities across the entire managed account ecosystem, including manufacturing, distribution and servicing
Archer’s fully integrated, cloud-based platform provides asset and wealth managers with a multi-product and multi-channel solution
NEW YORK, Sept. 5, 2024 /PRNewswire/ — The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK), a global financial services company, today announced BNY has entered into a definitive agreement to acquire Archer Holdco, LLC (“Archer”), a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry.
Archer provides asset and wealth managers with comprehensive middle- and back-office solutions to address the managed account needs of institutional, private wealth and retail investors. Through its fully integrated, cloud-based platform, Archer helps its clients to expand distribution, streamline operations, launch new investment products and deliver personalized outcomes to a broader market.
“Managed accounts are one of the fastest-growing investment vehicles in the asset management industry, enabling investment advisors and asset managers to offer customized portfolios to retail investors at scale,” said Emily Portney, Global Head of Asset Servicing at BNY. “By combining Archer’s market-leading capabilities with BNY’s broader footprint and expertise, BNY will offer fully integrated, end-to-end retail managed account solutions across our entire platform.”
With the integration of Archer’s managed account solutions, capabilities and professional servicing team, BNY will enhance its enterprise platform to support retail managed accounts, a market that is projected to grow at a double-digit compound annual growth rate to over $8 trillion in assets over the next three years in the U.S.1
In addition to augmenting BNY’s existing asset servicing capabilities for managed accounts, Archer will provide BNY Investments and BNY Pershing’s Wove wealth platform for advisors with expanded distribution of model portfolios and access to Archer’s multi-custodial network.
“Today’s asset and wealth managers have a strong desire to create multi-asset solutions across a variety of products, along with direct indexing and tax optimized portfolios, to meet the needs of their distribution partners and investors,” added Bryan Dori, President and CEO of Archer. “As a new addition to the BNY platform, Archer’s expertise, capabilities and scale will be leveraged across all of BNY to help even more clients drive long-term growth for their businesses.”
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed. The financial impact of the transaction is not expected to be material to BNY’s earnings and its previously communicated outlook for capital returns.
BofA Securities served as financial advisor and Sullivan & Cromwell acted as legal counsel for BNY. Raymond James served as financial advisor and DLA Piper acted as legal counsel for Archer.
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1According to Cerulli Inc, The Cerulli Report — U.S. Managed Accounts 2024: Strengthen and Scale Advisory Solutions, in reference to separate account and unified managed account program assets |
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Media
Garrett Marquis
+1 949 683 1503
garrett.marquis@bny.com
Analysts
Marius Merz
+1 212 298 1480
marius.merz@bny.com
About BNY
BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of June 30, 2024, BNY oversees $49.5 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune’s World’s Most Admired Companies and Fast Company’s Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.
About Archer
Archer is a technology-enabled service provider that helps investment managers deliver solutions aligned with investor needs. With Archer, investment managers can maintain their proven investment process while outsourcing operations and technology to benefit from a service model geared for growth. Archer has expansive connectivity across the industry and deep experience working with asset managers to help them swiftly streamline operations, enter new distribution channels, and launch new products.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results or other developments. When used in this press release, words or phrases generally written in the future or present tense and/or preceded by words such as “will,” “may,” “could,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” or other similar words are forward-looking statements. Various forward-looking statements in this press release relate to the acquisition by BNY of Archer, including regarding expected scale opportunities, additional capabilities and functionality, growth (including the growth of the SMA market), client and stockholder benefits, key assumptions and timing of closing of the transaction.
These forward-looking statements are based upon current beliefs, expectations and assumptions and are inherently subject to a number of known and unknown business, operational, economic, competitive and other risks, uncertainties and important factors, some of which are listed below, that are beyond the control of BNY and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Important transaction-related and other risk factors that may cause such differences include, but are not limited to, the following: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the acquisition agreement; (ii) the transaction closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain necessary regulatory approvals or that such regulatory approvals are obtained subject to conditions that are not anticipated; (iii) the announcement and pendency of the acquisition may disrupt Archer’s business operations (including the threatened or actual loss of employees, clients or suppliers); (iv) BNY may be unable to successfully integrate Archer’s business with BNY or to integrate the business within the anticipated timeframe; and (v) anticipated benefits of the transaction may not be fully realized or may take longer, or be more costly, to realize than expected. The foregoing list of important factors is not exhaustive.
For a detailed discussion of other risk factors regarding BNY, please refer to the risks, uncertainties and factors described in BNY’s recent filings with the U.S. Securities and Exchange Commission, including, without limitation, BNY ‘s most recent Annual Report on Form 10-K and subsequent periodic and current reports.
All forward-looking statements in this press release speak only as of the date on which such statement is made. BNY undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
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